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Institutional Mechanism of the Management of Local Government Effectiveness

Institutional Mechanism of the Management of Local Government Effectiveness

Journal of Economic Regulation, , Vol. 7 (no. 3),

Modeling an effective system of local government is a major challenge due to both political and economic reasons. It is designed, on the one hand, to separate the power of the various authorities and to increase the transparency and accountability of their activities, and on the other hand, to contribute to the conformity establishment between the proposed public goods and services, and the needs and preferences of the local population.
Based on the results which have been already achieved in implementation an mechanism of the local government effectiveness, on the example of Rostov-on-Don city the author analyzes the possibility of improving this mechanism in certain financial framework. The methodological base of the research is represented by the use of system and situational approaches. The complexity of the institutional mechanism of management is provided by the analysis of its two main blocks: the control of the current activities and strategic management - through the prism of its regulatory and incentive elements.
As a result of data comparison of the dynamics of the number of local governments employees, small and medium-sized enterprises, the volume of investment in fixed assets, the development of housing construction, culture and education in Rostov-on-Don and other cities of the Rostov region the author makes the conclusions about the effectiveness of the current local government system and gives recommendations for its further improvement.

Keywords: local government; local government institutions; municipal authority.

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